A land loan calculator turns the price of a lot or acreage, your down payment, the rate and the term into a monthly payment and a total cost. Formula: Payment = L × r ÷ (1 − (1 + r)^−n), where L = price − down payment, r = annual rate ÷ 12, n = years × 12. A $120,000 parcel with $30,000 down at 8.5% for 15 years costs $886.27 a month and $159,527.81 over the loan.
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How to use the land loan calculator
- Enter the price of the land.
- Enter your down payment in dollars.
- Enter the interest rate from your quote.
- Enter the term in years.
The land loan calculator shows the amount financed, the monthly payment and the total of all payments.
What formula does the land loan calculator use?
It uses the standard fixed-rate amortization formula on the amount financed: Payment = L × r ÷ (1 − (1 + r)−n). L is the price minus the down payment, r is the monthly rate and n is the number of monthly payments. Total paid is the payment times n.
Some land loans are interest only for a period, or have a balloon payment after a few years. If yours does, this result shows what a fully amortizing loan would cost, which is still useful for comparing offers.
Land loan calculator worked example
Results from the land loan calculator:
| Land deal | Amount financed | Monthly payment | Total paid |
|---|---|---|---|
| $60,000, $12,000 down, 9%, 10 years | $48,000.00 | $608.04 | $72,965.25 |
| $120,000, $30,000 down, 8.5%, 15 years | $90,000.00 | $886.27 | $159,527.81 |
| $250,000, $75,000 down, 7.5%, 20 years | $175,000.00 | $1,409.79 | $338,349.14 |
Land usually needs a bigger down payment than a house, and lenders often prefer shorter terms, because empty land is harder to sell if a borrower defaults. Rates and terms vary a lot by lender, so treat the rate as an input to test, not a given.
Farm land: USDA Farm Service Agency loans
If you farm or ranch, the USDA Farm Service Agency offers Farm Ownership loans that can be used to buy farmland. FSA says direct loans go up to $600,000, guaranteed loans up to $2,558,000, and terms can run up to 40 years. Its direct Farm Ownership rate was 6.250% effective October 1, 2026, and the Down Payment loan rate was 2.250%.
| FSA example | Amount financed | Monthly payment | Total paid |
|---|---|---|---|
| $300,000, 5% down, 6.25%, 40 years | $285,000.00 | $1,618.06 | $776,667.74 |
That row comes from the land loan calculator using the FSA direct rate. It is only an illustration: FSA loans have eligibility rules, and FSA sets the actual repayment schedule. FSA rates change monthly, so check the current table.
What to check before you borrow for land
Lenders look closely at what you plan to do with the land. Ask about road access, utilities, zoning, survey, flood zone and soil or perc tests if you need a septic system. Lots with utilities and road access are usually easier to finance than raw land. If you plan to build soon, a construction loan may roll the lot and the build into one loan; our construction loan calculator covers that path. Running the land loan calculator at two or three rates helps you set a budget before you make an offer.
Common mistakes to avoid
A common mistake is assuming land can be financed like a house. Many lenders want a much larger down payment on raw land, and some only lend on lots that already have utilities. Another is forgetting carrying costs. While you own the land you still pay property tax, insurance and sometimes association dues, even though you are not living there. A third is overlooking the cost of bringing in a road, a well, a septic system or power, which can be larger than the price of the lot.
Add those costs to your plan before you rely on the payment from the land loan calculator, and ask each lender whether the loan has a balloon payment.
Estimates for education only, not tax, legal or financial advice. Check current rules with the tax authority or a qualified adviser.
Related converters and calculators
Related calculators:
- Construction loan calculator: build financing
- Mortgage calculator: home payment
- Loan calculator: any fixed loan
Sources
USDA FSA: Farm Ownership Loans; USDA FSA: Current FSA loan interest rates; CFPB: What is a balloon payment?.
Questions about this calculator
What is a land loan?
A loan used to buy a lot or acreage. It is secured by the land and usually needs more money down than a home loan.
How is a land loan payment calculated?
The tool applies the standard amortization formula to the price minus your down payment, at your rate and term.
How long can a land loan last?
It depends on the lender. USDA FSA Farm Ownership loans can run up to 40 years for eligible farmers.
What is the FSA farm ownership rate?
The direct Farm Ownership rate was 6.250% effective October 1, 2026, per FSA. It is updated monthly.
Does this include taxes or fees?
No. Add property tax, closing costs and any lender fees separately.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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